The Toyota Way is a set of principles defining the organizational culture of Toyota Motor Corporation.[1][2] The company formalized the Toyota Way in 2001, after decades of academic research into the Toyota Production System and its implications for lean manufacturing as a methodology that other organizations could adopt.[3] The two pillars of the Toyota Way are respect for people and continuous improvement.[4] Jeffrey K. Liker popularized the philosophy in his 2004 book, The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer.[5] Subsequent research has explored the extent to which the Toyota Way can be applied in other contexts.[6]

Background[edit]

The principles were first collated into a single document in the company's pamphlet "The Toyota Way 2001", to help codify the company's organizational culture. The philosophy was subsequently analyzed in the 2004 book The Toyota Way by industrial engineering researcher Jeffrey Liker and has received attention in business administration education and corporate governance.

Principles[edit]

The principles of the Toyota Way are divided into the two broad categories of continuous improvement and respect for human resources.[7][8][9] The standards for constant improvement include directives to set up a long-term vision, to engage in a step-by-step approach to challenges, to search for the root causes of problems, and to engage in ongoing innovation. The standards pertain to respect for individuals and incorporate ways of building appreciation and cooperation.

The system is summarized in 14 principles:[10]

  1. "Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals."
  2. "Create a continuous process flow to bring problems to the surface." Work processes are redesigned to eliminate waste (muda), such as overproduction and waiting times, through continuous improvement (kaizen).
  3. "Use 'pull' systems to avoid overproduction." A pull system produces only the required material after a subsequent operation signals a need.
  4. "Level out the workload (heijunka). (Work like the tortoise, not the hare.)" This principle aims to avoid overburdening people or equipment and creating uneven production levels (mura).
  5. "Build a culture of stopping to fix problems, to get quality right the first time." Quality takes precedence (Jidoka). Any employee can stop the process to signal a quality issue.
  6. "Standardized tasks and processes are the foundation for continuous improvement and employee empowerment."
  7. "Use visual control so no problems are hidden." This principle includes the 5S Program, steps that are used to make all workspaces efficient and productive, help people share workstations, reduce time looking for needed tools, and improve the work environment.
  8. "Use only reliable, thoroughly tested technology that serves your people and processes."
  9. "Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others." This principle argues that training and ingrained perspective are necessary for maintaining the organization.
  10. "Develop exceptional people and teams who follow your company's philosophy."
  11. "Respect your extended network of partners and suppliers by challenging them and helping them improve." The automaker intends to apply the same principles to suppliers that its employees use.
  12. "Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu)." Toyota managers are expected to experience operations firsthand to see how they can be improved.
  13. "Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi)."
  14. "Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen)." The general problem-solving technique to determine the root cause of a problem includes initial problem perception, clarification of the trouble, locating the cause, root cause analysis, applying countermeasures, reevaluating, and standardizing.